Social Protection Minister of Ireland Heather Humphreys said the 2025 Budget makes no case for increasing social security rates for the long-term unemployed, giving priority to carers, pensioners and people with disabilities – Irish Examiner.
For those that are long-term unemployed, there are many, many opportunities for them to take up offers of work. My department works on an ongoing basis to help them go back into the workforce and help them upskill or retrain or go back to college. If they engage with those supports, it means they can get back into work, Humphreys stated.
The focus of the upcoming budget will be on increasing rates for carers, pensioners and people with disabilities. In addition, pensioners should be among the groups of people to receive priority in the budget, according to her. Despite, a general increase in social security rates is not among the plans. She noted:
I think given the fact that we’re at full employment, I’m not sure if there’s a policy rationale for increasing the payments on those who are long-term unemployed.
Social care minister also referred to the introduction of wage-linked benefits for jobseekers early next year, which will increase wage rates depending on a person’s previous salary based on the number of years of PRSI contributions. The probability of a €20 increase in social security rates across the board would cost €1.5 billion and leave other government ministers without a budget increase.
Thus, if payments fail to go up across the board, it could open up more room for larger increases in benefits such as the state pension, according to spokespeople for the Department of Social Security. As a consequence, the increase in social security rates is likely to be between €8 and €10, and even more if it is not universally implemented.
Humphreys made it clear that parents can expect to receive double child benefit payments this Christmas, describing the measure as extremely popular last year. According to her, she “had many people saying to me that meant a difference because we had a few bob in our pocket before Christmas and it’s an expensive time for any parent. There’s very few that don’t need the child benefit. If you’re rearing a family, there’s a lot of costs involved in it and I think the child benefit is a very, very important payment that comes in every month.”
Treasury Minister Jack Chambers has also hinted the budget will include a substantial package of measures to support pensioners and the least well-off members of Irish society, in addition to changes to USC and income tax, to put money back into people’s pockets. Announcing the official launch of the Irish Future Fund and the Infrastructure, Climate and Nature Fund, Chambers underlined:
- A significant increase for pensioners is on the cards;
- 9% Vat rate on gas and electricity will remain in place across the winter to help people with the cost of living;
- Changes to inheritance tax will be introduced to take account of rising house prices;
- Reductions in income tax through moves on the higher rate thresholds and changes to USC to help low-income earners.
Equally, signalling the need to abolish the inheritance tax, which Fine Gael is pushing for, Chambers said the levy represents a significant burden on many families. As children currently pay capital gains tax at a rate of 33 per cent on assets worth more than €335,000 inherited from their parents. The Finance Ministry’s tax strategy group said in recently published papers raising the threshold at which inheritance tax is payable from €335,000 to €350,000 would cost just €15 million, while raising it to €400,000 would cost €52 million.
